SlideShare a Scribd company logo

The State of Decentralized Storage

CoinGecko
CoinGecko

As NFT projects continue to pop up and censorship woes become a reality, decentralized storage has become a beacon of hope for many. Let’s check out how much the decentralized storage sector has grown!

1 of 16
Download to read offline
The State of
Decentralized
Storage
26 September 2022
The Global Data Landscape
In 2019, Google,
Amazon, Microsoft
and Facebook stored
at least 1.2M TB2
Total Coins Tracked
8,563
Decentralized storage is still a small fraction of the pie
Amount of data generated globally (zettabytes)
In 2021, the world
generated
approximately 79
zettabytes of data1
Sources:
1 Statista
2 Science Focus
3 An Honest Report on Web3 Data & Storage
79B
terabytes of
data
BUT…
0.015%
of generated data is
stored3
Even with a 5x
increase in 2022, only
2
History of Decentralized Storage
Early
2000
Launch of Napster, a P2P
audio file sharing system
June
1999
Launch of Gnutella, the first
decentralized file sharing
protocol
May
2000
First version of LimeWire
released
February
2015
Birth of IPFS
June
2015
Launch of the
Sia network
June
2018
Late
2018
Launch of the
Arweave mainnet
October
2020
Launch of
Filecoin mainnet
Launch of Storj, a
decentralized cloud
storage platform
October
2019
Launch of BitTorrent File
System (BTFS) mainnet
3
September
2017
Filecoin’s ICO
raises $257M
July
2018
Justin Sun’s Tron
Foundation acquires
BitTorrent for $140M
July
2001
First version of BitTorrent
released
July
2010
The Pirate Bay, a P2P file
sharing site, is shut down by
authorities
4
Why Do We Need Decentralized Storage?
The benefits of decentralized storage mimic those of blockchain systems
Key Aspects Current State of Centralized Storage How does Decentralized Storage Improve on This
Data Availability
& Resiliency
► Data is typically stored on one main site, putting it at risk of
data becoming unavailable if site goes offline
► Backup storage / site(s) can be provisioned but would usually
cost more
► Typically works on HTTP, which points to a specific path. If
data is no longer at the path it becomes a dead link and returns
404 error.
► Data is typically broken down into many parts and stored on
multiple nodes, creating natural redundancy
► Uses advance techniques to reassemble data without
needing all the parts, further improving availability
► On-chain storage is “always up” as long as there are miners /
validators.
► In addition to supporting HTTP, mainly uses IPFS, which has a
content-based approach – not dependent on path
Security /
Encryption
► Data stored may (or may not) be encrypted
► Encryption keys are also stored on centralized databases,
making them prime targets for hacks
► Most solutions offer auto-encryption and each individual
part of the data can be encrypted separately
Data Integrity
► Tracing of any unauthorized changes to the data would require
prior setup of a logging tool. If no such tool was implemented
such changes may go unnoticed
► IPFS’ approach uses hash to identify data
► Hashing helps ensure that data have not been corrupted /
altered improperly, as doing so will change the hash
Privacy
► Certain storage providers would use the content of your data
as a form of monetization, e.g. via serving ads
► As each node stores encrypted data, there is no way for the
node to read the contents of the data
Open /
Censorship
Resistance
► Provider may undertake KYC on prospective clients
► Data stored in specific sites would be governed by local data
laws / regulations
► Permissionless solutions where anyone can store data
► As nodes have no knowledge of actual content of data, there is
no censorship possible
Performance /
Scalability
► Typically would have multi-tier offerings based on
performance
► Actual performance based on proximity to providers’ data
centers, which are typically built in locations with advance
bandwidth infrastructure
► Sites are typically large datacenters run by providers, which
requires significant investment from providers
► Beginning to see emergence of multiple tiers (though still not
prevalent and still not as varied as centralized providers)
► Potentially could have greater coverage of nodes spread out
across the globe, helping reach more far-flung areas
► Any miners / validator that meet much lower minimum
hardware requirements can join in return for rewards
Who’s Currently Using It?
Universally used by everyone, both in and out of the crypto space
• Images, audio and video files are
usually too expensive to store on
the blockchain.
• But using decentralized storage, the
content of the NFT (audio, images
and its metadata) can be stored off-
chain using a unique hash.
• The hash can then be hosted on
IPFS or other decentralized
solutions where it can be stored
and accessed.
• Allows developers to create tools
and websites in an isolated
environment.
• Developers can create and host
important files and UIs that are
censorship-resistant and pivotal
for decentralized applications
(dApps)
• Networks can store historic on-
chain data to reduce the
computational load of validators.
• Users can permanently store
important documents and retrieve
them even if centralized services
fail or cease to exist.
• Businesses can backup their data
permanently for future purposes.
• Ability to access websites or
information restricted by
centralized entities.
NFTs Everyday Users
Developers
5
6
Decentralized Storage Projects by Data Persistence Mechanisms
Except Arweave, the decentralized storage projects today are contract-based
Contract-based Persistence
▪ Instead of replicating data across every node on
the network, a set of multiple nodes enter into
a contract to store a piece data for a specific
period of time
▪ The contract then can be renewed if the time
period needs to be extended.
▪ Instead of the entire data set, the hash of where
the data is located gets stored on-chain.
Blockchain-based Persistence
▪ Technically, every blockchain is a distributed
database and can function as a decentralized
storage network
▪ However, most blockchains are not built to
store large amounts of data. They are designed
more to store transactions, and are typically
also append-only.
▪ They are also inefficient in the sense that every
node on the network needs to keep a copy of
the data.
Source: Ethereum Foundation

Recommended

Defining a Tech Project Vision in Eight Quick Steps pdf
Defining a Tech Project Vision in Eight Quick Steps pdfDefining a Tech Project Vision in Eight Quick Steps pdf
Defining a Tech Project Vision in Eight Quick Steps pdfTechSoup
 
The Future Of Work & The Work Of The Future
The Future Of Work & The Work Of The FutureThe Future Of Work & The Work Of The Future
The Future Of Work & The Work Of The FutureArturo Pelayo
 
Web3 Infrastructure Thesis
Web3 Infrastructure Thesis Web3 Infrastructure Thesis
Web3 Infrastructure Thesis SeanStuart17
 
Introduction to Blockchain
Introduction to BlockchainIntroduction to Blockchain
Introduction to BlockchainJordan Harris
 
Intro to Web3
Intro to Web3Intro to Web3
Intro to Web3asasdasd5
 
Smart contracts using web3.js
Smart contracts using web3.jsSmart contracts using web3.js
Smart contracts using web3.jsFelix Crisan
 
Blockchain Explained | Blockchain Simplified | Blockchain Technology | Blockc...
Blockchain Explained | Blockchain Simplified | Blockchain Technology | Blockc...Blockchain Explained | Blockchain Simplified | Blockchain Technology | Blockc...
Blockchain Explained | Blockchain Simplified | Blockchain Technology | Blockc...Edureka!
 

More Related Content

What's hot

Q4 2022 DBX Investor Presentation.pdf
Q4 2022 DBX Investor Presentation.pdfQ4 2022 DBX Investor Presentation.pdf
Q4 2022 DBX Investor Presentation.pdfDropbox
 
Mobile-First SEO - The Marketers Edition #3XEDigital
Mobile-First SEO - The Marketers Edition #3XEDigitalMobile-First SEO - The Marketers Edition #3XEDigital
Mobile-First SEO - The Marketers Edition #3XEDigitalAleyda Solís
 
An Investor's Guide to Web3 / Crypto / Blockchain
An Investor's Guide to Web3 / Crypto / BlockchainAn Investor's Guide to Web3 / Crypto / Blockchain
An Investor's Guide to Web3 / Crypto / BlockchainBernard Leong
 
The Five Biggest Tech Trends Transforming Government In 2022
The Five Biggest Tech Trends Transforming Government In 2022The Five Biggest Tech Trends Transforming Government In 2022
The Five Biggest Tech Trends Transforming Government In 2022Bernard Marr
 
A Framework for Navigating Generative Artificial Intelligence for Enterprise
A Framework for Navigating Generative Artificial Intelligence for EnterpriseA Framework for Navigating Generative Artificial Intelligence for Enterprise
A Framework for Navigating Generative Artificial Intelligence for EnterpriseRocketSource
 
Web3 Market Overview Global & Japan
Web3 Market Overview Global & JapanWeb3 Market Overview Global & Japan
Web3 Market Overview Global & JapanTaiki Narita
 
Reimagining the Agenda | Accenture
Reimagining the Agenda | AccentureReimagining the Agenda | Accenture
Reimagining the Agenda | Accentureaccenture
 
Blockchain Introduction Presentation
Blockchain Introduction PresentationBlockchain Introduction Presentation
Blockchain Introduction PresentationAmr Alaa Yassen
 
How To Build A Career In Blockchain
How To Build A Career In BlockchainHow To Build A Career In Blockchain
How To Build A Career In Blockchain101 Blockchains
 
How People Are Leveraging ChatGPT
How People Are Leveraging ChatGPTHow People Are Leveraging ChatGPT
How People Are Leveraging ChatGPTRoy Ahuja
 
How does blockchain work
How does blockchain workHow does blockchain work
How does blockchain workShishir Aryal
 
Blockchain Technology | Blockchain Explained | Blockchain Tutorial | Blockcha...
Blockchain Technology | Blockchain Explained | Blockchain Tutorial | Blockcha...Blockchain Technology | Blockchain Explained | Blockchain Tutorial | Blockcha...
Blockchain Technology | Blockchain Explained | Blockchain Tutorial | Blockcha...Edureka!
 
The Web3 Data Economy: Ocean Protocol
The Web3 Data Economy: Ocean ProtocolThe Web3 Data Economy: Ocean Protocol
The Web3 Data Economy: Ocean ProtocolTrent McConaghy
 
ChatGPT What It Is and How Writers Can Use It.pdf
ChatGPT What It Is and How Writers Can Use It.pdfChatGPT What It Is and How Writers Can Use It.pdf
ChatGPT What It Is and How Writers Can Use It.pdfAdsy
 
Exploring Blockchain Technology, Risks, and Emerging Trends
Exploring Blockchain Technology, Risks, and Emerging TrendsExploring Blockchain Technology, Risks, and Emerging Trends
Exploring Blockchain Technology, Risks, and Emerging TrendsAmazon Web Services
 

What's hot (20)

Q4 2022 DBX Investor Presentation.pdf
Q4 2022 DBX Investor Presentation.pdfQ4 2022 DBX Investor Presentation.pdf
Q4 2022 DBX Investor Presentation.pdf
 
Mobile-First SEO - The Marketers Edition #3XEDigital
Mobile-First SEO - The Marketers Edition #3XEDigitalMobile-First SEO - The Marketers Edition #3XEDigital
Mobile-First SEO - The Marketers Edition #3XEDigital
 
An Investor's Guide to Web3 / Crypto / Blockchain
An Investor's Guide to Web3 / Crypto / BlockchainAn Investor's Guide to Web3 / Crypto / Blockchain
An Investor's Guide to Web3 / Crypto / Blockchain
 
The Five Biggest Tech Trends Transforming Government In 2022
The Five Biggest Tech Trends Transforming Government In 2022The Five Biggest Tech Trends Transforming Government In 2022
The Five Biggest Tech Trends Transforming Government In 2022
 
A Framework for Navigating Generative Artificial Intelligence for Enterprise
A Framework for Navigating Generative Artificial Intelligence for EnterpriseA Framework for Navigating Generative Artificial Intelligence for Enterprise
A Framework for Navigating Generative Artificial Intelligence for Enterprise
 
Web3 Market Overview Global & Japan
Web3 Market Overview Global & JapanWeb3 Market Overview Global & Japan
Web3 Market Overview Global & Japan
 
Blockchain
BlockchainBlockchain
Blockchain
 
Reimagining the Agenda | Accenture
Reimagining the Agenda | AccentureReimagining the Agenda | Accenture
Reimagining the Agenda | Accenture
 
Blockchain Introduction Presentation
Blockchain Introduction PresentationBlockchain Introduction Presentation
Blockchain Introduction Presentation
 
How To Build A Career In Blockchain
How To Build A Career In BlockchainHow To Build A Career In Blockchain
How To Build A Career In Blockchain
 
2023 Digital Trends
2023 Digital Trends 2023 Digital Trends
2023 Digital Trends
 
Is AI generation the next platform shift?
Is AI generation the next platform shift?Is AI generation the next platform shift?
Is AI generation the next platform shift?
 
How People Are Leveraging ChatGPT
How People Are Leveraging ChatGPTHow People Are Leveraging ChatGPT
How People Are Leveraging ChatGPT
 
How does blockchain work
How does blockchain workHow does blockchain work
How does blockchain work
 
Blockchain Technology | Blockchain Explained | Blockchain Tutorial | Blockcha...
Blockchain Technology | Blockchain Explained | Blockchain Tutorial | Blockcha...Blockchain Technology | Blockchain Explained | Blockchain Tutorial | Blockcha...
Blockchain Technology | Blockchain Explained | Blockchain Tutorial | Blockcha...
 
Pitch Deck 2015
Pitch Deck 2015Pitch Deck 2015
Pitch Deck 2015
 
The Web3 Data Economy: Ocean Protocol
The Web3 Data Economy: Ocean ProtocolThe Web3 Data Economy: Ocean Protocol
The Web3 Data Economy: Ocean Protocol
 
BLOCKCHAIN
BLOCKCHAINBLOCKCHAIN
BLOCKCHAIN
 
ChatGPT What It Is and How Writers Can Use It.pdf
ChatGPT What It Is and How Writers Can Use It.pdfChatGPT What It Is and How Writers Can Use It.pdf
ChatGPT What It Is and How Writers Can Use It.pdf
 
Exploring Blockchain Technology, Risks, and Emerging Trends
Exploring Blockchain Technology, Risks, and Emerging TrendsExploring Blockchain Technology, Risks, and Emerging Trends
Exploring Blockchain Technology, Risks, and Emerging Trends
 

Similar to The State of Decentralized Storage

IRJET- Distributed Decentralized Data Storage using IPFS
IRJET- Distributed Decentralized Data Storage using IPFSIRJET- Distributed Decentralized Data Storage using IPFS
IRJET- Distributed Decentralized Data Storage using IPFSIRJET Journal
 
Introduction to Enterprise Data Storage, Direct Attached Storage, Storage Ar...
Introduction to Enterprise Data Storage,  Direct Attached Storage, Storage Ar...Introduction to Enterprise Data Storage,  Direct Attached Storage, Storage Ar...
Introduction to Enterprise Data Storage, Direct Attached Storage, Storage Ar...ssuserec8a711
 
IRJET- A Survey on File Storage and Retrieval using Blockchain Technology
IRJET- A Survey on File Storage and Retrieval using Blockchain TechnologyIRJET- A Survey on File Storage and Retrieval using Blockchain Technology
IRJET- A Survey on File Storage and Retrieval using Blockchain TechnologyIRJET Journal
 
Introduction to Filecoin
Introduction to Filecoin   Introduction to Filecoin
Introduction to Filecoin Vanessa Lošić
 
Introduction to IPFS & Filecoin - longer version
Introduction to IPFS & Filecoin - longer versionIntroduction to IPFS & Filecoin - longer version
Introduction to IPFS & Filecoin - longer versionTinaBregovi
 
Huawei Symantec Oceanspace N8000 clustered NAS Overview
Huawei Symantec Oceanspace N8000 clustered NAS OverviewHuawei Symantec Oceanspace N8000 clustered NAS Overview
Huawei Symantec Oceanspace N8000 clustered NAS OverviewUtopia Media
 
UTOPOLL白皮書.pdf
UTOPOLL白皮書.pdfUTOPOLL白皮書.pdf
UTOPOLL白皮書.pdfaipaypoll
 
Storage As A Service (StAAS)
Storage As A Service (StAAS)Storage As A Service (StAAS)
Storage As A Service (StAAS)Shreyans Jain
 
Introduction to IPFS & Filecoin
Introduction to IPFS & FilecoinIntroduction to IPFS & Filecoin
Introduction to IPFS & FilecoinTinaBregovi
 
TechDay - Toronto 2016 - Hyperconvergence and OpenNebula
TechDay - Toronto 2016 - Hyperconvergence and OpenNebulaTechDay - Toronto 2016 - Hyperconvergence and OpenNebula
TechDay - Toronto 2016 - Hyperconvergence and OpenNebulaOpenNebula Project
 
5 step for deploying cost effective cloud ecommerce
5 step for deploying cost effective cloud ecommerce5 step for deploying cost effective cloud ecommerce
5 step for deploying cost effective cloud ecommerceWiudo Laos
 
(Speaker Notes Version) Architecting An Enterprise Storage Platform Using Obj...
(Speaker Notes Version) Architecting An Enterprise Storage Platform Using Obj...(Speaker Notes Version) Architecting An Enterprise Storage Platform Using Obj...
(Speaker Notes Version) Architecting An Enterprise Storage Platform Using Obj...Niraj Tolia
 
Alluxio Monthly Webinar | Why NFS/NAS on Object Storage May Not Solve Your AI...
Alluxio Monthly Webinar | Why NFS/NAS on Object Storage May Not Solve Your AI...Alluxio Monthly Webinar | Why NFS/NAS on Object Storage May Not Solve Your AI...
Alluxio Monthly Webinar | Why NFS/NAS on Object Storage May Not Solve Your AI...Alluxio, Inc.
 
Spectrum Scale Unified File and Object with WAN Caching
Spectrum Scale Unified File and Object with WAN CachingSpectrum Scale Unified File and Object with WAN Caching
Spectrum Scale Unified File and Object with WAN CachingSandeep Patil
 
Software Defined Analytics with File and Object Access Plus Geographically Di...
Software Defined Analytics with File and Object Access Plus Geographically Di...Software Defined Analytics with File and Object Access Plus Geographically Di...
Software Defined Analytics with File and Object Access Plus Geographically Di...Trishali Nayar
 
Storage Area Network (SAN session Day-2)
Storage Area Network (SAN session Day-2)Storage Area Network (SAN session Day-2)
Storage Area Network (SAN session Day-2)Saroj Sahu
 
Predictable Big Data Performance in Real-time
Predictable Big Data Performance in Real-timePredictable Big Data Performance in Real-time
Predictable Big Data Performance in Real-timeAerospike, Inc.
 
Presentation atmos architecture overview
Presentation   atmos architecture overviewPresentation   atmos architecture overview
Presentation atmos architecture overviewxKinAnx
 
Research data management 1.5
Research data management 1.5Research data management 1.5
Research data management 1.5John Martin
 

Similar to The State of Decentralized Storage (20)

IRJET- Distributed Decentralized Data Storage using IPFS
IRJET- Distributed Decentralized Data Storage using IPFSIRJET- Distributed Decentralized Data Storage using IPFS
IRJET- Distributed Decentralized Data Storage using IPFS
 
Introduction to Enterprise Data Storage, Direct Attached Storage, Storage Ar...
Introduction to Enterprise Data Storage,  Direct Attached Storage, Storage Ar...Introduction to Enterprise Data Storage,  Direct Attached Storage, Storage Ar...
Introduction to Enterprise Data Storage, Direct Attached Storage, Storage Ar...
 
IRJET- A Survey on File Storage and Retrieval using Blockchain Technology
IRJET- A Survey on File Storage and Retrieval using Blockchain TechnologyIRJET- A Survey on File Storage and Retrieval using Blockchain Technology
IRJET- A Survey on File Storage and Retrieval using Blockchain Technology
 
Introduction to Filecoin
Introduction to Filecoin   Introduction to Filecoin
Introduction to Filecoin
 
Introduction to IPFS & Filecoin - longer version
Introduction to IPFS & Filecoin - longer versionIntroduction to IPFS & Filecoin - longer version
Introduction to IPFS & Filecoin - longer version
 
Utopoll Whitepaper.pdf
Utopoll Whitepaper.pdfUtopoll Whitepaper.pdf
Utopoll Whitepaper.pdf
 
Huawei Symantec Oceanspace N8000 clustered NAS Overview
Huawei Symantec Oceanspace N8000 clustered NAS OverviewHuawei Symantec Oceanspace N8000 clustered NAS Overview
Huawei Symantec Oceanspace N8000 clustered NAS Overview
 
UTOPOLL白皮書.pdf
UTOPOLL白皮書.pdfUTOPOLL白皮書.pdf
UTOPOLL白皮書.pdf
 
Storage As A Service (StAAS)
Storage As A Service (StAAS)Storage As A Service (StAAS)
Storage As A Service (StAAS)
 
Introduction to IPFS & Filecoin
Introduction to IPFS & FilecoinIntroduction to IPFS & Filecoin
Introduction to IPFS & Filecoin
 
TechDay - Toronto 2016 - Hyperconvergence and OpenNebula
TechDay - Toronto 2016 - Hyperconvergence and OpenNebulaTechDay - Toronto 2016 - Hyperconvergence and OpenNebula
TechDay - Toronto 2016 - Hyperconvergence and OpenNebula
 
5 step for deploying cost effective cloud ecommerce
5 step for deploying cost effective cloud ecommerce5 step for deploying cost effective cloud ecommerce
5 step for deploying cost effective cloud ecommerce
 
(Speaker Notes Version) Architecting An Enterprise Storage Platform Using Obj...
(Speaker Notes Version) Architecting An Enterprise Storage Platform Using Obj...(Speaker Notes Version) Architecting An Enterprise Storage Platform Using Obj...
(Speaker Notes Version) Architecting An Enterprise Storage Platform Using Obj...
 
Alluxio Monthly Webinar | Why NFS/NAS on Object Storage May Not Solve Your AI...
Alluxio Monthly Webinar | Why NFS/NAS on Object Storage May Not Solve Your AI...Alluxio Monthly Webinar | Why NFS/NAS on Object Storage May Not Solve Your AI...
Alluxio Monthly Webinar | Why NFS/NAS on Object Storage May Not Solve Your AI...
 
Spectrum Scale Unified File and Object with WAN Caching
Spectrum Scale Unified File and Object with WAN CachingSpectrum Scale Unified File and Object with WAN Caching
Spectrum Scale Unified File and Object with WAN Caching
 
Software Defined Analytics with File and Object Access Plus Geographically Di...
Software Defined Analytics with File and Object Access Plus Geographically Di...Software Defined Analytics with File and Object Access Plus Geographically Di...
Software Defined Analytics with File and Object Access Plus Geographically Di...
 
Storage Area Network (SAN session Day-2)
Storage Area Network (SAN session Day-2)Storage Area Network (SAN session Day-2)
Storage Area Network (SAN session Day-2)
 
Predictable Big Data Performance in Real-time
Predictable Big Data Performance in Real-timePredictable Big Data Performance in Real-time
Predictable Big Data Performance in Real-time
 
Presentation atmos architecture overview
Presentation   atmos architecture overviewPresentation   atmos architecture overview
Presentation atmos architecture overview
 
Research data management 1.5
Research data management 1.5Research data management 1.5
Research data management 1.5
 

More from CoinGecko

2023 Annual Crypto Industry Report | CoinGecko
2023 Annual Crypto Industry Report | CoinGecko2023 Annual Crypto Industry Report | CoinGecko
2023 Annual Crypto Industry Report | CoinGeckoCoinGecko
 
GameFi Report 2023: GameFi Levels Up | CoinGecko
GameFi Report 2023: GameFi Levels Up | CoinGeckoGameFi Report 2023: GameFi Levels Up | CoinGecko
GameFi Report 2023: GameFi Levels Up | CoinGeckoCoinGecko
 
2023 Q3 Crypto Industry Report | CoinGecko
2023 Q3 Crypto Industry Report | CoinGecko2023 Q3 Crypto Industry Report | CoinGecko
2023 Q3 Crypto Industry Report | CoinGeckoCoinGecko
 
Deep Diving Into ETH Liquid Staking | CoinGecko
Deep Diving Into ETH Liquid Staking | CoinGeckoDeep Diving Into ETH Liquid Staking | CoinGecko
Deep Diving Into ETH Liquid Staking | CoinGeckoCoinGecko
 
2023 Q2 Crypto Industry Report | CoinGecko
2023 Q2 Crypto Industry Report | CoinGecko2023 Q2 Crypto Industry Report | CoinGecko
2023 Q2 Crypto Industry Report | CoinGeckoCoinGecko
 
The State of Decentralized Perpetual Protocols | CoinGecko
The State of Decentralized Perpetual Protocols | CoinGeckoThe State of Decentralized Perpetual Protocols | CoinGecko
The State of Decentralized Perpetual Protocols | CoinGeckoCoinGecko
 
The Global Crypto Classification Standard by 21Shares & CoinGecko
The Global Crypto Classification Standard by 21Shares & CoinGeckoThe Global Crypto Classification Standard by 21Shares & CoinGecko
The Global Crypto Classification Standard by 21Shares & CoinGeckoCoinGecko
 
2022 Annual Crypto Industry Report
2022 Annual Crypto Industry Report2022 Annual Crypto Industry Report
2022 Annual Crypto Industry ReportCoinGecko
 
CoinGecko Q2 2022 Quarterly Report
CoinGecko Q2 2022 Quarterly ReportCoinGecko Q2 2022 Quarterly Report
CoinGecko Q2 2022 Quarterly ReportCoinGecko
 
CoinGecko Q2 2022 Quarterly Report
CoinGecko Q2 2022 Quarterly ReportCoinGecko Q2 2022 Quarterly Report
CoinGecko Q2 2022 Quarterly ReportCoinGecko
 
CoinGecko Q2 2022 Quarterly Report
CoinGecko Q2 2022 Quarterly ReportCoinGecko Q2 2022 Quarterly Report
CoinGecko Q2 2022 Quarterly ReportCoinGecko
 
CoinGecko Q2 2022 Quarterly Report
CoinGecko Q2 2022 Quarterly ReportCoinGecko Q2 2022 Quarterly Report
CoinGecko Q2 2022 Quarterly ReportCoinGecko
 
CoinGecko 2019 Year End Cryptocurrency Report
CoinGecko 2019 Year End Cryptocurrency ReportCoinGecko 2019 Year End Cryptocurrency Report
CoinGecko 2019 Year End Cryptocurrency ReportCoinGecko
 
Steem 2018 Report by CoinGecko
Steem 2018 Report by CoinGeckoSteem 2018 Report by CoinGecko
Steem 2018 Report by CoinGeckoCoinGecko
 
CoinGecko 2018 Full Year Cryptocurrency Report
CoinGecko 2018 Full Year Cryptocurrency ReportCoinGecko 2018 Full Year Cryptocurrency Report
CoinGecko 2018 Full Year Cryptocurrency ReportCoinGecko
 
CoinGecko 2018 Q2 Cryptocurrency Report
CoinGecko 2018 Q2 Cryptocurrency ReportCoinGecko 2018 Q2 Cryptocurrency Report
CoinGecko 2018 Q2 Cryptocurrency ReportCoinGecko
 
CoinGecko 2018 Q1 Cryptocurrency Report
CoinGecko 2018 Q1 Cryptocurrency ReportCoinGecko 2018 Q1 Cryptocurrency Report
CoinGecko 2018 Q1 Cryptocurrency ReportCoinGecko
 
2017 Year in Review Cryptocurrency Report by CoinGecko
2017 Year in Review Cryptocurrency Report by CoinGecko2017 Year in Review Cryptocurrency Report by CoinGecko
2017 Year in Review Cryptocurrency Report by CoinGeckoCoinGecko
 
Q3 2017 Cryptocurrency Report by CoinGecko
Q3 2017 Cryptocurrency Report by CoinGeckoQ3 2017 Cryptocurrency Report by CoinGecko
Q3 2017 Cryptocurrency Report by CoinGeckoCoinGecko
 

More from CoinGecko (19)

2023 Annual Crypto Industry Report | CoinGecko
2023 Annual Crypto Industry Report | CoinGecko2023 Annual Crypto Industry Report | CoinGecko
2023 Annual Crypto Industry Report | CoinGecko
 
GameFi Report 2023: GameFi Levels Up | CoinGecko
GameFi Report 2023: GameFi Levels Up | CoinGeckoGameFi Report 2023: GameFi Levels Up | CoinGecko
GameFi Report 2023: GameFi Levels Up | CoinGecko
 
2023 Q3 Crypto Industry Report | CoinGecko
2023 Q3 Crypto Industry Report | CoinGecko2023 Q3 Crypto Industry Report | CoinGecko
2023 Q3 Crypto Industry Report | CoinGecko
 
Deep Diving Into ETH Liquid Staking | CoinGecko
Deep Diving Into ETH Liquid Staking | CoinGeckoDeep Diving Into ETH Liquid Staking | CoinGecko
Deep Diving Into ETH Liquid Staking | CoinGecko
 
2023 Q2 Crypto Industry Report | CoinGecko
2023 Q2 Crypto Industry Report | CoinGecko2023 Q2 Crypto Industry Report | CoinGecko
2023 Q2 Crypto Industry Report | CoinGecko
 
The State of Decentralized Perpetual Protocols | CoinGecko
The State of Decentralized Perpetual Protocols | CoinGeckoThe State of Decentralized Perpetual Protocols | CoinGecko
The State of Decentralized Perpetual Protocols | CoinGecko
 
The Global Crypto Classification Standard by 21Shares & CoinGecko
The Global Crypto Classification Standard by 21Shares & CoinGeckoThe Global Crypto Classification Standard by 21Shares & CoinGecko
The Global Crypto Classification Standard by 21Shares & CoinGecko
 
2022 Annual Crypto Industry Report
2022 Annual Crypto Industry Report2022 Annual Crypto Industry Report
2022 Annual Crypto Industry Report
 
CoinGecko Q2 2022 Quarterly Report
CoinGecko Q2 2022 Quarterly ReportCoinGecko Q2 2022 Quarterly Report
CoinGecko Q2 2022 Quarterly Report
 
CoinGecko Q2 2022 Quarterly Report
CoinGecko Q2 2022 Quarterly ReportCoinGecko Q2 2022 Quarterly Report
CoinGecko Q2 2022 Quarterly Report
 
CoinGecko Q2 2022 Quarterly Report
CoinGecko Q2 2022 Quarterly ReportCoinGecko Q2 2022 Quarterly Report
CoinGecko Q2 2022 Quarterly Report
 
CoinGecko Q2 2022 Quarterly Report
CoinGecko Q2 2022 Quarterly ReportCoinGecko Q2 2022 Quarterly Report
CoinGecko Q2 2022 Quarterly Report
 
CoinGecko 2019 Year End Cryptocurrency Report
CoinGecko 2019 Year End Cryptocurrency ReportCoinGecko 2019 Year End Cryptocurrency Report
CoinGecko 2019 Year End Cryptocurrency Report
 
Steem 2018 Report by CoinGecko
Steem 2018 Report by CoinGeckoSteem 2018 Report by CoinGecko
Steem 2018 Report by CoinGecko
 
CoinGecko 2018 Full Year Cryptocurrency Report
CoinGecko 2018 Full Year Cryptocurrency ReportCoinGecko 2018 Full Year Cryptocurrency Report
CoinGecko 2018 Full Year Cryptocurrency Report
 
CoinGecko 2018 Q2 Cryptocurrency Report
CoinGecko 2018 Q2 Cryptocurrency ReportCoinGecko 2018 Q2 Cryptocurrency Report
CoinGecko 2018 Q2 Cryptocurrency Report
 
CoinGecko 2018 Q1 Cryptocurrency Report
CoinGecko 2018 Q1 Cryptocurrency ReportCoinGecko 2018 Q1 Cryptocurrency Report
CoinGecko 2018 Q1 Cryptocurrency Report
 
2017 Year in Review Cryptocurrency Report by CoinGecko
2017 Year in Review Cryptocurrency Report by CoinGecko2017 Year in Review Cryptocurrency Report by CoinGecko
2017 Year in Review Cryptocurrency Report by CoinGecko
 
Q3 2017 Cryptocurrency Report by CoinGecko
Q3 2017 Cryptocurrency Report by CoinGeckoQ3 2017 Cryptocurrency Report by CoinGecko
Q3 2017 Cryptocurrency Report by CoinGecko
 

Recently uploaded

Artificial Intelligence, Design, and More-than-Human Justice
Artificial Intelligence, Design, and More-than-Human JusticeArtificial Intelligence, Design, and More-than-Human Justice
Artificial Intelligence, Design, and More-than-Human JusticeJosh Gellers
 
Launching New Products In Companies Where It Matters Most by Product Director...
Launching New Products In Companies Where It Matters Most by Product Director...Launching New Products In Companies Where It Matters Most by Product Director...
Launching New Products In Companies Where It Matters Most by Product Director...Product School
 
Unleash the Solace Pub Sub connector | Banaglore MuleSoft Meetup #31
Unleash the Solace Pub Sub connector | Banaglore MuleSoft Meetup #31Unleash the Solace Pub Sub connector | Banaglore MuleSoft Meetup #31
Unleash the Solace Pub Sub connector | Banaglore MuleSoft Meetup #31shyamraj55
 
HBR SERIES METAL HOUSED RESISTORS POWER ELECTRICAL ABSORBS HIGH CURRENT DURIN...
HBR SERIES METAL HOUSED RESISTORS POWER ELECTRICAL ABSORBS HIGH CURRENT DURIN...HBR SERIES METAL HOUSED RESISTORS POWER ELECTRICAL ABSORBS HIGH CURRENT DURIN...
HBR SERIES METAL HOUSED RESISTORS POWER ELECTRICAL ABSORBS HIGH CURRENT DURIN...htrindia
 
SKY Paradigms, change and cake: the steep curve of introducing new technologies
SKY Paradigms, change and cake: the steep curve of introducing new technologiesSKY Paradigms, change and cake: the steep curve of introducing new technologies
SKY Paradigms, change and cake: the steep curve of introducing new technologiesNeo4j
 
Utilising Energy Modelling for LCSF and PSDS Funding Applications
Utilising Energy Modelling for LCSF and PSDS Funding ApplicationsUtilising Energy Modelling for LCSF and PSDS Funding Applications
Utilising Energy Modelling for LCSF and PSDS Funding ApplicationsIES VE
 
Act Like an Owner, Challenge Like a VC by former CPO, Tripadvisor
Act Like an Owner,  Challenge Like a VC by former CPO, TripadvisorAct Like an Owner,  Challenge Like a VC by former CPO, Tripadvisor
Act Like an Owner, Challenge Like a VC by former CPO, TripadvisorProduct School
 
The Art of the Possible with Graph by Dr Jim Webber Neo4j.pptx
The Art of the Possible with Graph by Dr Jim Webber Neo4j.pptxThe Art of the Possible with Graph by Dr Jim Webber Neo4j.pptx
The Art of the Possible with Graph by Dr Jim Webber Neo4j.pptxNeo4j
 
KUBRICK Graphs: A journey from in vogue to success-ion
KUBRICK Graphs: A journey from in vogue to success-ionKUBRICK Graphs: A journey from in vogue to success-ion
KUBRICK Graphs: A journey from in vogue to success-ionNeo4j
 
AI improves software testing to be more fault tolerant, focused and efficient
AI improves software testing to be more fault tolerant, focused and efficientAI improves software testing to be more fault tolerant, focused and efficient
AI improves software testing to be more fault tolerant, focused and efficientKari Kakkonen
 
IT Nation Evolve event 2024 - Quarter 1
IT Nation Evolve event 2024  - Quarter 1IT Nation Evolve event 2024  - Quarter 1
IT Nation Evolve event 2024 - Quarter 1Inbay UK
 
Introducing the New FME Community Webinar - Feb 21, 2024 (2).pdf
Introducing the New FME Community Webinar - Feb 21, 2024 (2).pdfIntroducing the New FME Community Webinar - Feb 21, 2024 (2).pdf
Introducing the New FME Community Webinar - Feb 21, 2024 (2).pdfSafe Software
 
Python For Kids - Sách Lập trình cho trẻ em
Python For Kids - Sách Lập trình cho trẻ emPython For Kids - Sách Lập trình cho trẻ em
Python For Kids - Sách Lập trình cho trẻ emNho Vĩnh
 
Roundtable_-_API_Research__Testing_Tools.pdf
Roundtable_-_API_Research__Testing_Tools.pdfRoundtable_-_API_Research__Testing_Tools.pdf
Roundtable_-_API_Research__Testing_Tools.pdfMostafa Higazy
 
Dev Dives: Leverage APIs and Gen AI to power automations for RPA and software...
Dev Dives: Leverage APIs and Gen AI to power automations for RPA and software...Dev Dives: Leverage APIs and Gen AI to power automations for RPA and software...
Dev Dives: Leverage APIs and Gen AI to power automations for RPA and software...UiPathCommunity
 
Progress Report: Ministry of IT under Dr. Umar Saif Aug 23-Feb'24
Progress Report: Ministry of IT under Dr. Umar Saif Aug 23-Feb'24Progress Report: Ministry of IT under Dr. Umar Saif Aug 23-Feb'24
Progress Report: Ministry of IT under Dr. Umar Saif Aug 23-Feb'24Umar Saif
 
Pragmatic UI testing with Compose Semantics.pdf
Pragmatic UI testing with Compose Semantics.pdfPragmatic UI testing with Compose Semantics.pdf
Pragmatic UI testing with Compose Semantics.pdfinfogdgmi
 
National Institute of Standards and Technology (NIST) Cybersecurity Framework...
National Institute of Standards and Technology (NIST) Cybersecurity Framework...National Institute of Standards and Technology (NIST) Cybersecurity Framework...
National Institute of Standards and Technology (NIST) Cybersecurity Framework...MichaelBenis1
 
Cultivating Entrepreneurial Mindset in Product Management: Strategies for Suc...
Cultivating Entrepreneurial Mindset in Product Management: Strategies for Suc...Cultivating Entrepreneurial Mindset in Product Management: Strategies for Suc...
Cultivating Entrepreneurial Mindset in Product Management: Strategies for Suc...Product School
 
LF Energy Webinar: Introduction to TROLIE
LF Energy Webinar: Introduction to TROLIELF Energy Webinar: Introduction to TROLIE
LF Energy Webinar: Introduction to TROLIEDanBrown980551
 

Recently uploaded (20)

Artificial Intelligence, Design, and More-than-Human Justice
Artificial Intelligence, Design, and More-than-Human JusticeArtificial Intelligence, Design, and More-than-Human Justice
Artificial Intelligence, Design, and More-than-Human Justice
 
Launching New Products In Companies Where It Matters Most by Product Director...
Launching New Products In Companies Where It Matters Most by Product Director...Launching New Products In Companies Where It Matters Most by Product Director...
Launching New Products In Companies Where It Matters Most by Product Director...
 
Unleash the Solace Pub Sub connector | Banaglore MuleSoft Meetup #31
Unleash the Solace Pub Sub connector | Banaglore MuleSoft Meetup #31Unleash the Solace Pub Sub connector | Banaglore MuleSoft Meetup #31
Unleash the Solace Pub Sub connector | Banaglore MuleSoft Meetup #31
 
HBR SERIES METAL HOUSED RESISTORS POWER ELECTRICAL ABSORBS HIGH CURRENT DURIN...
HBR SERIES METAL HOUSED RESISTORS POWER ELECTRICAL ABSORBS HIGH CURRENT DURIN...HBR SERIES METAL HOUSED RESISTORS POWER ELECTRICAL ABSORBS HIGH CURRENT DURIN...
HBR SERIES METAL HOUSED RESISTORS POWER ELECTRICAL ABSORBS HIGH CURRENT DURIN...
 
SKY Paradigms, change and cake: the steep curve of introducing new technologies
SKY Paradigms, change and cake: the steep curve of introducing new technologiesSKY Paradigms, change and cake: the steep curve of introducing new technologies
SKY Paradigms, change and cake: the steep curve of introducing new technologies
 
Utilising Energy Modelling for LCSF and PSDS Funding Applications
Utilising Energy Modelling for LCSF and PSDS Funding ApplicationsUtilising Energy Modelling for LCSF and PSDS Funding Applications
Utilising Energy Modelling for LCSF and PSDS Funding Applications
 
Act Like an Owner, Challenge Like a VC by former CPO, Tripadvisor
Act Like an Owner,  Challenge Like a VC by former CPO, TripadvisorAct Like an Owner,  Challenge Like a VC by former CPO, Tripadvisor
Act Like an Owner, Challenge Like a VC by former CPO, Tripadvisor
 
The Art of the Possible with Graph by Dr Jim Webber Neo4j.pptx
The Art of the Possible with Graph by Dr Jim Webber Neo4j.pptxThe Art of the Possible with Graph by Dr Jim Webber Neo4j.pptx
The Art of the Possible with Graph by Dr Jim Webber Neo4j.pptx
 
KUBRICK Graphs: A journey from in vogue to success-ion
KUBRICK Graphs: A journey from in vogue to success-ionKUBRICK Graphs: A journey from in vogue to success-ion
KUBRICK Graphs: A journey from in vogue to success-ion
 
AI improves software testing to be more fault tolerant, focused and efficient
AI improves software testing to be more fault tolerant, focused and efficientAI improves software testing to be more fault tolerant, focused and efficient
AI improves software testing to be more fault tolerant, focused and efficient
 
IT Nation Evolve event 2024 - Quarter 1
IT Nation Evolve event 2024  - Quarter 1IT Nation Evolve event 2024  - Quarter 1
IT Nation Evolve event 2024 - Quarter 1
 
Introducing the New FME Community Webinar - Feb 21, 2024 (2).pdf
Introducing the New FME Community Webinar - Feb 21, 2024 (2).pdfIntroducing the New FME Community Webinar - Feb 21, 2024 (2).pdf
Introducing the New FME Community Webinar - Feb 21, 2024 (2).pdf
 
Python For Kids - Sách Lập trình cho trẻ em
Python For Kids - Sách Lập trình cho trẻ emPython For Kids - Sách Lập trình cho trẻ em
Python For Kids - Sách Lập trình cho trẻ em
 
Roundtable_-_API_Research__Testing_Tools.pdf
Roundtable_-_API_Research__Testing_Tools.pdfRoundtable_-_API_Research__Testing_Tools.pdf
Roundtable_-_API_Research__Testing_Tools.pdf
 
Dev Dives: Leverage APIs and Gen AI to power automations for RPA and software...
Dev Dives: Leverage APIs and Gen AI to power automations for RPA and software...Dev Dives: Leverage APIs and Gen AI to power automations for RPA and software...
Dev Dives: Leverage APIs and Gen AI to power automations for RPA and software...
 
Progress Report: Ministry of IT under Dr. Umar Saif Aug 23-Feb'24
Progress Report: Ministry of IT under Dr. Umar Saif Aug 23-Feb'24Progress Report: Ministry of IT under Dr. Umar Saif Aug 23-Feb'24
Progress Report: Ministry of IT under Dr. Umar Saif Aug 23-Feb'24
 
Pragmatic UI testing with Compose Semantics.pdf
Pragmatic UI testing with Compose Semantics.pdfPragmatic UI testing with Compose Semantics.pdf
Pragmatic UI testing with Compose Semantics.pdf
 
National Institute of Standards and Technology (NIST) Cybersecurity Framework...
National Institute of Standards and Technology (NIST) Cybersecurity Framework...National Institute of Standards and Technology (NIST) Cybersecurity Framework...
National Institute of Standards and Technology (NIST) Cybersecurity Framework...
 
Cultivating Entrepreneurial Mindset in Product Management: Strategies for Suc...
Cultivating Entrepreneurial Mindset in Product Management: Strategies for Suc...Cultivating Entrepreneurial Mindset in Product Management: Strategies for Suc...
Cultivating Entrepreneurial Mindset in Product Management: Strategies for Suc...
 
LF Energy Webinar: Introduction to TROLIE
LF Energy Webinar: Introduction to TROLIELF Energy Webinar: Introduction to TROLIE
LF Energy Webinar: Introduction to TROLIE
 

The State of Decentralized Storage

  • 2. The Global Data Landscape In 2019, Google, Amazon, Microsoft and Facebook stored at least 1.2M TB2 Total Coins Tracked 8,563 Decentralized storage is still a small fraction of the pie Amount of data generated globally (zettabytes) In 2021, the world generated approximately 79 zettabytes of data1 Sources: 1 Statista 2 Science Focus 3 An Honest Report on Web3 Data & Storage 79B terabytes of data BUT… 0.015% of generated data is stored3 Even with a 5x increase in 2022, only 2
  • 3. History of Decentralized Storage Early 2000 Launch of Napster, a P2P audio file sharing system June 1999 Launch of Gnutella, the first decentralized file sharing protocol May 2000 First version of LimeWire released February 2015 Birth of IPFS June 2015 Launch of the Sia network June 2018 Late 2018 Launch of the Arweave mainnet October 2020 Launch of Filecoin mainnet Launch of Storj, a decentralized cloud storage platform October 2019 Launch of BitTorrent File System (BTFS) mainnet 3 September 2017 Filecoin’s ICO raises $257M July 2018 Justin Sun’s Tron Foundation acquires BitTorrent for $140M July 2001 First version of BitTorrent released July 2010 The Pirate Bay, a P2P file sharing site, is shut down by authorities
  • 4. 4 Why Do We Need Decentralized Storage? The benefits of decentralized storage mimic those of blockchain systems Key Aspects Current State of Centralized Storage How does Decentralized Storage Improve on This Data Availability & Resiliency ► Data is typically stored on one main site, putting it at risk of data becoming unavailable if site goes offline ► Backup storage / site(s) can be provisioned but would usually cost more ► Typically works on HTTP, which points to a specific path. If data is no longer at the path it becomes a dead link and returns 404 error. ► Data is typically broken down into many parts and stored on multiple nodes, creating natural redundancy ► Uses advance techniques to reassemble data without needing all the parts, further improving availability ► On-chain storage is “always up” as long as there are miners / validators. ► In addition to supporting HTTP, mainly uses IPFS, which has a content-based approach – not dependent on path Security / Encryption ► Data stored may (or may not) be encrypted ► Encryption keys are also stored on centralized databases, making them prime targets for hacks ► Most solutions offer auto-encryption and each individual part of the data can be encrypted separately Data Integrity ► Tracing of any unauthorized changes to the data would require prior setup of a logging tool. If no such tool was implemented such changes may go unnoticed ► IPFS’ approach uses hash to identify data ► Hashing helps ensure that data have not been corrupted / altered improperly, as doing so will change the hash Privacy ► Certain storage providers would use the content of your data as a form of monetization, e.g. via serving ads ► As each node stores encrypted data, there is no way for the node to read the contents of the data Open / Censorship Resistance ► Provider may undertake KYC on prospective clients ► Data stored in specific sites would be governed by local data laws / regulations ► Permissionless solutions where anyone can store data ► As nodes have no knowledge of actual content of data, there is no censorship possible Performance / Scalability ► Typically would have multi-tier offerings based on performance ► Actual performance based on proximity to providers’ data centers, which are typically built in locations with advance bandwidth infrastructure ► Sites are typically large datacenters run by providers, which requires significant investment from providers ► Beginning to see emergence of multiple tiers (though still not prevalent and still not as varied as centralized providers) ► Potentially could have greater coverage of nodes spread out across the globe, helping reach more far-flung areas ► Any miners / validator that meet much lower minimum hardware requirements can join in return for rewards
  • 5. Who’s Currently Using It? Universally used by everyone, both in and out of the crypto space • Images, audio and video files are usually too expensive to store on the blockchain. • But using decentralized storage, the content of the NFT (audio, images and its metadata) can be stored off- chain using a unique hash. • The hash can then be hosted on IPFS or other decentralized solutions where it can be stored and accessed. • Allows developers to create tools and websites in an isolated environment. • Developers can create and host important files and UIs that are censorship-resistant and pivotal for decentralized applications (dApps) • Networks can store historic on- chain data to reduce the computational load of validators. • Users can permanently store important documents and retrieve them even if centralized services fail or cease to exist. • Businesses can backup their data permanently for future purposes. • Ability to access websites or information restricted by centralized entities. NFTs Everyday Users Developers 5
  • 6. 6 Decentralized Storage Projects by Data Persistence Mechanisms Except Arweave, the decentralized storage projects today are contract-based Contract-based Persistence ▪ Instead of replicating data across every node on the network, a set of multiple nodes enter into a contract to store a piece data for a specific period of time ▪ The contract then can be renewed if the time period needs to be extended. ▪ Instead of the entire data set, the hash of where the data is located gets stored on-chain. Blockchain-based Persistence ▪ Technically, every blockchain is a distributed database and can function as a decentralized storage network ▪ However, most blockchains are not built to store large amounts of data. They are designed more to store transactions, and are typically also append-only. ▪ They are also inefficient in the sense that every node on the network needs to keep a copy of the data. Source: Ethereum Foundation
  • 7. 7 Features and Technical Specifications Each decentralized storage solution comes with its own unique features ~$1,520M Proof of Spacetime (PoSt) & Proof of Replication (PoR) Users choose the number of copies to be replicated Users choose whether to encrypt their stored data or not Utilizes Filecoin Virtual Machine (FVM) CPU: 8 cores or more RAM: 137GB or more Hard Drive: 1.1TB or more ~$546M Succinct Proof of Random Access (SPoRA) Via recall data stored by miners. Data is replicated over 16 times across the blockweave Users choose whether to encrypt their stored data or not ‘Lazy’ SmartWeave contracts that are executed and validated by users, not the network CPU: 6 cores or more RAM: 8.6GB or more Hard Drive: 4TB or more ~$81M Proof of Availability (PoA) Via Reed-Solomon erasure coding. Data is split into 80 pieces and only 29 is needed for retrieval Automatically encrypted using the AES-256 algorithm by default Does not have smart contracts CPU: 1 core or more RAM: 2GB or more Hard Drive: 550GB or more ~$214M Proof of Work (PoW) Via Reed-Solomon erasure coding. Data is split into 30 pieces and only 10 is needed for retrieval Automatically encrypted using the Threefish algorithm by default File contracts between renters and storage providers, automatically enforced by the network CPU: 4 cores or more RAM: 8GB or more Hard Drive: 64GB or more ~$851M Proof of Stake (PoS) Via Reed-Solomon erasure coding. Data is split into 30 pieces and only 10 is needed for retrieval Users choose whether to encrypt their stored data or not Utilizes BitTorrent-Chain Virtual Machine (BTTCVM) CPU: 1 core or more RAM: 1GB or more Hard Drive: 32GB or more $1.5T1 N/A Users choose specific files to replicate within or across different regions Users can enable server- side encryption using the AES-256 algorithm N/A N/A Current Market Cap Encryption Data Replication & Retrieval Smart Contract Execution Minimum Hosting Requirements Consensus Algorithm 1 Source: Amazon market cap Barron’s
  • 8. Active Nodes Is it really decentralized? Not all nodes are created equal. Technical or hardware requirements for some nodes are considerably higher, such as Filecoin and Arweave. There will be different tradeoffs present for different systems. Sources: ViewBlock, SiaStats, FIlfox, StorjStats, BTFS Scan (Data as of 8 Sept 2022) *BTFS documentation indicate that 1) node count may include both renters and hosts, and 2) there is no limit to the number of nodes that can be run from a single public IP Ultimately, decentralized storage services provide censorship resistance if users’ data are split and distributed widely enough. 8 69 692 4,051 15,860 4.87M 0K 5K 10K 15K 20K 25K Arweave Sia Filecoin Storj Bittorrent 4.5M 5.0M Active Nodes
  • 9. Capacity vs Usage Decentralized storage capacity has increased exponentially in the past 2 years As the NFT season of 2021 took off, there was a surge of demand for decentralized storage, resulting in a massive increase of available storage. By the end of 2021, the total storage capacity breached 16.7M TB, increasing by more than 4x from 2020. Filecoin currently has the largest capacity compared to other decentralized storage solutions, with network storage power of over 21M TB. That’s more than 40x the capacity of BitTorrent’s BTFS network, the 2nd largest decentralized storage provider. However, most of this storage currently remains unused. As of Q3 2022, only 1% of Filecoin’s total capacity is actively being used. On the other hand, usage on other smaller solutions is much higher. For example, ~64% of Storj’s total capacity is currently utilized. *Total capacity data includes Arweave, Filecoin, Storj, and Sia. BTFS excluded due to incomplete data **Arweave usage is always equal to its capacity ​ 9
  • 10. $0.0002 $6.00* $1.09 $5.00 $4.00 $7.00 $0.94 $5.00 $3.01 $7.00* Decentralized Trumps Centralized 10 Centralized Providers Decentralized Providers The catch: • Bandwidth - Upload (ingress) and retrieval (egress) fees are involved as well. • Storj charges $7 / TB to upload / download while Sia costs $0.41 / TB to upload, and $2 / TB to download. • Filecoin charges a market price that’s quoted by the storage or retrieval miners. * Only 2TB packages available. Figure is derived by dividing the cost of package by half. Decentralized storage is much cheaper • In terms of pricing, demand for decentralized storage trumps centralized storage. Even in the decentralized sector, there are outliers especially Filecoin. • Filecoin Plus, an incentive program that boosts rewards for legit, verified deals, has seen storage providers offering near-zero or zero fees to compete for block rewards. • These rewards are often subsidized by Filecoin as they aim to grow the network. Cost of Decentralized Storage Monthly Price per TB Monthly Price per TB
  • 11. Protocol Revenue Filecoin is far ahead of its peers, but is still a long way behind centralized services 11 11 The bulk of decentralized storage protocols’ revenue comes from their network fees and are closely intertwined with the price of their coins (in USD terms). Filecoin’s revenue has taken a hit due to the slumping FIL price. For context, FIL closed at $5.32 by the end of Q2 2022, -85% compared to the start of the year. Yet, Filecoin is still by far the largest decentralized storage solution in revenue. $19.7 B $2.9 B $0.6 B $0 B $2 B $4 B $6 B $8 B $10 B $12 B $14 B $16 B $18 B $20 B AWS Oracle Dropbox Filecoin Arweave SiaCoin Centralized Storage Decentralized Storage $13,372,089 $193,430 $35,531 $0 M $2 M $4 M $6 M $8 M $10 M $12 M $14 M Filecoin Arweave SiaCoin Revenue (Q2 2022) Decentralized storage however still pales in comparison against its centralized counterparts. AWS for instance raked in close to $20 billion in Q2, more than 1,000 times the revenue of Filecoin, Arweave and Siacoin combined. Decentralized storage networks are still growing, and we can expect more services and applications being built on top to provide additional revenue streams in the future. Revenue data for other decencentralized solutions such as Storj and Bittorrent unavailable. Sources: TokenTerminal, SiaStats, CNBC
  • 12. • Web3.Storage • NFT.storage • Filedrive • Fleek • Estuary • Lighthouse • Ocean • Filehive • ChainSafe Files • Slate • Chingari • Filfox • Filscan • Filecoin Green • Kyve • Permafrost • Via • Arweave. Design • Gitopia • TestWeave • Amplify • Koii • Meson. network • Ardrive • Akord • Evermore • Verto • Pianity • Metaweave • Decent.land • Glass • Koii • Weve • Sarcophagus • ArVerify • Traxa • Uplink CLI • Drivex • Arq • FileZilla • Fastly • Skynet • Filebase • VUP • Arzen • SkyFeed • SkyID • SkySend Decentralized Apps on Decentralized Storage What's being built on storage L1s? 12 Most ubiquitous use of de-storage is for storing NFTs and Web3 data. However, apps span many different current and emerging use cases, some which may overlap. Others include content distribution networks, decentralized IDs, oracles, payment systems, e-mail and more. Arweave leads in terms of native applications and smart contract capabilities, while Filecoin has many prominent users (e.g. MagicEden, OpenSea, Audius, etc.) and stores important data (e.g. Shoah Foundation, Internet Archive). Further buildout of the Filecoin Virtual Machine in late 2022 could see more native applications built on Filecoin. Web3 storage Dev Tooling Data Market Consumer Storage Marketplaces Socials Others *BTFS apps still in development
  • 13. Looking to the future Decentralized storage is part of the value chain of online computing 13 User Computing Storage Blockchain Cloud 1. Immutable data 2. Censorship-resistant 3. Usually cheaper 1. Convenient 2. Established network effect 3. One-stop shop for IT products To understand where decentralized storage is headed, we must look at the bigger picture. Data storage is merely a subset of the larger value chain of online computing. Value Chain
  • 14. Understanding the competition Incumbents already have a head start after capturing the value chain 14 While decentralized storage providers focus on one aspect of the value chain, incumbents like Amazon already have a suite of cloud products designed for online computing, and not just for storage. Under storage alone, AWS has 9 types of different products, catering to different solutions. However, they have 227 products (as of 15 Sept 2022) across different lines like AI, IoT etc. This allows them to cross-sell different products while offering a holistic solution under the umbrella of Cloud services. 1 Source: Arweave News Incumbents have existing products that funnel users into their storage space. Platforms like Google and Microsoft offer email messenger services and word processing programs (e.g., Microsoft Word and Google Docs). Users will naturally save their files on the most convenient platform which is usually the incumbent’s native product. The regulatory space surrounding data management is strict. Compliance to the GDPR has become the main hurdle that every business faces when it comes to data compliance. As it stands, there are some arguments to suggest that blockchain technology is not compliant due to the permanence of blockchain data1. At the very least, the legal state of decentralized storage is uncertain. As a business/consumer, would you be willing to take that risk? Or would you rather stick with existing cloud providers that are more familiar? 1 2 3
  • 15. Conclusion and Key Takeaways There is a lot of ground to cover before decentralized storage can become mainstream 15 Many decentralized storage solutions are not as decentralized as you think. Decentralized storage has its advantages, but it will take time before it even comes remotely close to the big boys. Outside of censorship concerns and costs, there is little incentive to migrate outside of centralized storage providers, especially when you consider the compliance concerns. The first mover advantage has allowed incumbents to secure a strong network effect. Not only that, incumbents like Amazon and Microsoft have a suite of complementary IT- related products to enforce user stickiness. Bridging the gap will require innovative methods to capture other parts of the value chain and funneling users into decentralized storage platforms. Some opportunities include: Integration with traditional software companies Building products which can attract genuine users Tackling niche areas that are dominated by cloud technology, such as edge computing